CBSE Class 12 Accountancy Not For Profit Organisation Worksheet Set B

MCQ Questions for NCERT Class 12 Accountancy Accounting For Not- For - Profit Organisations 

Question. A not for profit organisation includes:
(a) Religious Organisations
(b) Trade unions
(c) Clubs
(d) Educational institutions
(e) All of the above

Answer: E

Question. Life Membership Fees received by a club is shown in :
(a) Income and Expenditure A/c
(b) Balance Sheet
(c) Receipts and Payments A/c
(d) None of these

Answer: B

Question. Salaries paid during the year ended 31st March, 2020 is Rs. 36,000. Salaries paid in advance at the end of previous year were Rs. 54,000. The amount of Salaries to be debited to income and Expenditure Account for the year ended 31st March, 2020 will be
(a) Rs. 54,000.
(b) Rs. 36,000.
(c) Rs. 90,000.
(d) Rs. 18,000.

Answer: C

Question. The excess of assets over liabilities in non-trading concerns is termed as:
(a) Capital Fund
(b) Capital
(c) Profit
(d) Net Profit

Answer: A

Question. Life membership fee received by a club is:
(a) Revenue Receipt
(b) Capital Receipt
(c) (a) and (b) both
(d) None of these

Answer: B

Question. An Income and Expenditure Account reveals:
(a) Cash position.
(b) Surplus or Deficit.
(c) Capital Fund.
(d) None of the above.

Answer: B

Question. If Income is Rs.16,000 and deficit debited to Capital Fund is Rs.4,300 then Expenditure is:
(a) 16,000
(b) 4,300
(c) 20,300
(d) None of these

Answer: C

Question. Which of the following statements is not true for Receipts and Payments Account?
(a) It is a summary of the Cash Book.
(b) It records receipts and payments of revenue nature only.
(c) The receipts and payments may relate to current, preceding, or succeeding accounting periods.
(d) Depreciation is not shown in it.

Answer: B

Question. Receipts and Payments Account is a
(a) Real Account.
(b) Nominal Account.
(c) Personal Account.
(d) Revenue Account

Answer: A

Question. The amount of ‘Entrance Fees’ received by a Non-profit organisation (if it is received regularly) is shown in which of the following?
(a) Liability side of Balance Sheet
(b) Assets side of Balance Sheet
(c) Debit side of Income and Expenditure Account
(d) Credit side of Income and Expenditure Account

Answer: D

Question. Credit side balance in Income & Expenditure Account reveals :
(a) Excess of cash receipts overpayments
(b) Excess of cash payments over receipts
(c) Excess of expenditure over income
(d) Excess of income over expenditure

Answer: D

Question. Subscription received in advance during the current year is :
(a) an income
(b) an asset
(c) a liability
(d) none of these

Answer: C

Question. The opening balance of Prize Fund was ₹32,800. During the year, donations reoeived towards this fund amounted to ₹15,400; amount spent on prizes was 712,300 and interest received on prize fund investment was ₹4,000. The closing balance of Prize Fund will be :
(a) ₹56,500
(b) ₹64,500
(c) ₹39,900
(d) ₹31,900

Answer: C

Question. Subscription received by a school for organising annual function is treated as:
(a) Capital receipt (i.e. Liability)
(b) Revenue receipt (i.e. Income)
(c) Assets.
(d) Earned income.

Answer: B

Question. Most transaction in non-trading concerns are:
(a) Cash
(b) Credit
(c) Both (a) and (b)
(d) None of these

Answer: A

Question. If a General Donation of huge amount is received by a school, that donation is treated as :
(a) Revenue Receipt (Income)
(b) Capital Receipt (Liability)
(c) Assets
(d) Earned Income

Answer: B

Question. Subscription received during the year were:
Rs. 800 for the current year.
Rs. 100 for the previous year
Rs. 100 for the next year.
In the receipts and payments account the receipts from subscriptions would appear at ____________.
(a) Rs. 700
(b) Rs. 800
(c) Rs. 900
(d) Rs. 1,000

Answer: D

Question. Income and Expenditure Account records transactions of:
(a) Revenue nature only
(b) Capital nature only
(c) Both revenue and capital nature
(d) Income of only revenue nature and expenditure of revenue and capital nature.

Answer: A

Question. Subscription received in advance during the current year is
(a) an income.
(b) an asset.
(c) a liability.
(d) None of these.

Answer: C

Short Answer Questions 

Question: Show how will you deal with the following items while preparing financial statements of a club for the year ending 31st March. 2020:
i. Tournament Expenses Rs.12,000.
ii. Tournament Expenses Rs.12,000, Tournament Receipts Rs.15,000.
iii. Tournament Expenses Rs.18,000, Tournament Receipts Rs.5,000, Tournament Fund Rs.15,000.
Answer: *In case of Specific Fund – Liabilities side
*In case of No Specific Fund – Income & Expenditure A/c

Question:  Differentiate between Receipts & payments account and Cash book.
Answer: Basis of distinction- Basis of preparation, Period, Institutions & Ledger folio.

Question:  Prepare Receipts & Payments account for the year ended 31st March, 2020.
Opening cash Rs.6,000; Subscriptions received Rs.25,000; Prize Fund Rs.12,000, Entrance fees Rs.4,000; Sale of newspaper Rs.700, Electricity charges Rs.4,000, Municipal taxes Rs.3,000; Salaries Rs.36,000, Repairs Rs.2,000, Match expenses Rs.2,500; Furniture purchased Rs.6,000.
Answer: Cash in hand on 31.03.2020 - Rs.24,200 (Balancing figure)

Question:  How will you deal with the following items while preparing Income & Expenditure account of a club for the year ending 31st Dec. 2019:


Locker’s rent received during the year Rs.9,500.
Answer: Income from locker’ rent - Rs.9,900

Question:  Show how will you deal with the following cases while preparing financial statements of a club for the year ending 31st March. 2020:
a. Furniture as on 31.03.2019 Rs.1,80,000; A new furniture was purchased on 01.07.2019 for Rs.60,000; Furniture of book value of Rs.20,000 on 01.04.2019 was sold at a profit of 20% on 30.06.2019; Furniture is to be depreciated @ 10% p.a.
b. Furniture as on 31.03.2019 Rs.4,00,000; Furniture of book value of Rs.40,000 on 01.04.2019 was sold at a loss of 10% on 30.09.2019; A new furniture was purchased on 01.01.2020 for Rs.50,000; Furniture is to be depreciated @ 10% p.a.
c. Furniture as on 01.04.2019 Rs.3,00,000; Furniture of book value of Rs.80,000 on 01.04.2019 was sold at a profit of 20% on 30.09.2019; A new furniture was purchased on 31.12.2019 for Rs.50,000; Furniture is to be depreciated @ 10% p.a.
Answer:
a. Total Depreciation for 2019-20 - Rs.15,000
b. Total Depreciation for 2019-20 - Rs.39,250
c. Total Depreciation for 2019-20 - Rs.27,250

Question: From the following particulars, calculate the amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2020.
(a) Subscriptions in arrears on 31st March 2019 - Rs.500
(b) Subscriptions received in advance on 31st March, for the year ended on 31st March 2019 - Rs.1,100
(c) Total subscriptions received during 2019-20 - Rs.35,400
(including Rs.400 for 2019, Rs.1,200 for 2020-21 and Rs.300 for 2021-22)
(d) Subscriptions outstanding for 2019-20 - Rs.400
Answer: Amount to be credited to the Income and Expenditure Account Rs.35,000.

Question: Give any four differences between Not-for-profit organisations and Profit earning organisations.
Answer: Basis of distinction- Objective, Capital contribution, Financial statements, Results. 

Long Answer Questions 

Question: From the following Receipts and Payments Account of Krish Fitness and wellness Club for the year ended 31st March 2020, prepare Income and Expenditure Account.
                                                                                Receipts and Payments Account
                                                                               for the year ending 31st December, 2019

Additional information:
i. Subscription outstanding during the year 2018 was Rs. 8,000 and Subscription still outstanding for the year 2019 was Rs.6,000.
ii. Salaries was paid for 10 months.
iii. Rent is paid upto March 2020.
iv. The club owned Furniture Rs.16,000 and Sports Equipment Rs.10,000.
v. Depreciate Furniture and Sports Equipment by 10%.
Prepare Income and expenditure Account of the club for the year ended 31st December, 2019 and Balance Sheet as at that date.
Answer: Surplus- Rs.24,150; Capital Fund- Rs.42,000; Balance sheet Total- Rs.84,650

Question: How will you deal with the following items while preparing the Income & Expenditure A/c for the year ending on 31st March, 2020 and a Balance Sheet as on that date:



During 2019-20, the payment made to the suppliers of sports materials was Rs.54,000. Cash purchases of sports material during the year- Rs.8,000
Answer: Cost of sports material consumed - Rs.71,000

2. a) From the following particulars, calculate the amount of subscription received in advance during 2019-20.
I. Subscription received during the year 2019-20 Rs.52,500
II. There were 200 members paying subscription at the rate of Rs.250 p.a. each
III. Some members have paid their annual subscription in advance during the year
IV. As on 1-4-2019 no subscription had been received in advance but subscriptions were outstanding to the extent of Rs.1,000 as on 31-3- 2019
V. Subscription accrued as on 31-3-2020 Rs.1,500

b) Calculate the stock of books consumed during the year 2019-20 and show the treatment in balance sheet on dated 31-3-2019 and 31-3- 2020:
Stock of books on 1-4-2019 Rs.6,200; Stock of books on 1-4-2020 Rs.4,800; Creditors for books on 1-4-2019 Rs.9;800 ;Creditors for books on 1-4-2020 Rs.7,200 ;Advance to supplier on 1-4-2019 Rs.11,000 ;Advance to supplier on 1-4-2020 Rs.19,000; Purchase of books during the year Rs.91,400.
Answer: a) Advance Subscription- Rs.3000
              b) Books consumed- Rs.92,800

Question: From the following trial balance and information, prepare Income and Expenditure account for the year ending 31^st Dec. 2019:


Additional information:
i. Tuition fees due Rs.9,000
ii. Salaries unpaid Rs.3,000
iii. Depreciate Furniture by 10% and Books by 15%.
Answer: Surplus- Rs.1,16,430 (General Fund is same as Capital Fund)